Answer to Question #238679 in Management for Gundo

Question

Discuss the accounting process as a cycle with a given period by explaining each of the

steps and by giving practical examples.

Answer 1

The accounting cycle is the comprehensive process of documenting and processing all of a company's financial transactions, from when they occur to when they are represented on financial statements to when the accounts are closed. One of a bookkeeper's key responsibilities is to maintain track of the entire accounting cycle from beginning to end. As long as a company is in business, the cycle repeats itself every fiscal year.

Steps in the accounting cycle

·        Transactions

·        Journal Entries

·        Posting to the General Ledger (GL)

·        Trial Balance

·        Worksheet

·        Adjusting Entries

·        Financial Statements

·        Closing